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Hotel Acquisition and Renovation – Pro Forma Real Estate (Excel XLSX)
Excel (XLSX)
BENEFITS OF DOCUMENT
- Hotel Acquisition and Renovation Feasibility Analysis
DESCRIPTION
The Hotel Acquisition & Renovation Pro-form is an excel-based tool for assessing the viability of acquiring an existing hotel and subsequent renovation. The model is monthly in nature, and it is 100% unlocked with transparent and easy-to-understand formulas that can be customized to the user's needs.
It bases the expense of the renovation on monthly multi-room renovation with the option to stop activities during the renovation period.
The operating Cash flow is projected by considering key metrics, such as occupancy rates, the average daily rate (ADR), revenue per room occupied/sold for the different departments, and the combination of fixed and variable costs, making the template perfectly fitted to this type of real estate.
The user only needs to input information into the cells formatted in the dark blue font in the input sheet. Any other formats are formulas or labels.
The model is provided with information from a hypothetical business model for a Fast Food Franchise for demonstration.
Functionalities:
• Revenue & COGS Projections: Sales Breakdown and distribution costs by different Departments, allowing the assessment of the profit for the different departments,
• Undistributed Expenses: modeled as Fixed and Variable
Financing: Modeling of the acquisition and permanent Loan
Sale valuation of the hotel based on forwarding Net Operating Income (NOI)
The template includes detailed projections for Net Operating Income (NOI), Cash Flow After Debt Service, and Leveraged Net Cash Flow, spanning a comprehensive 10-year period. It also offers a granular breakdown of various expense categories, including undistributed expenses and departmental costs. The model's sensitivity analysis for Leveraged IRR provides critical insights into the impact of changes in purchase price and interest rates. This tool is indispensable for making data-driven decisions and optimizing financial performance in hotel acquisitions and renovations.
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Source: Best Practices in Integrated Financial Model, Hotel Industry Excel: Hotel Acquisition and Renovation – Pro Forma Real Estate Excel (XLSX) Spreadsheet, Jair Almeida
